The ratings on the Republic of Costa Rica balance the country's limited monetary and exchange rate flexibility and persistent fiscal pressures with good prospects for long-term GDP growth, a stable political system, relatively high social development, and modest current account deficits largely funded by net foreign direct investment. Standard&Poor's Ratings Services expects real GDP per capita to expand 2.7% in 2013, sustained by an increasingly diverse base of both manufacturing and service exports. Recent growth in the export of commercial services, along with electronic products, and medical devices, augurs well for long-term GDP and export growth. Foreign exchange reserves, which have covered about 2.5 months of current account payments in recent years, are likely to increase to more
